January 28, 2021

Viking

American males in the most affluent counties across this country have a life expectancy of 80.5 years. Their female counterparts have a life expectancy of 84.9 years. Assuming a retirement or at least a slowing down sometime in our mid 60’s, this could mean a multi-decade period during which we are living off of our retirement savings. Which means cash or short-term bonds will not be enough. Some risk assets will be...

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You Can’t Spend Earnings

You can't spend earnings. At first glance, this probably seems like an odd statement, possibly even incorrect. However, it is not only correct, but an important investing axiom for any type of investor. Let me explain. Earnings are that which is derived from the exchange of a product, service or other, less associated expenses. Ultimately, it is our desire that earnings are converted to

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How Technology Ate The Stock Market

In 2011, venture capitalist Marc Andreessen wrote one of the more prescient pieces of this century, called Why Software Is Eating the World. He laid out his reasoning behind the idea that technology is fundamentally changing the way we do business, likely for good: My own theory is that we are in the middle of a dramatic and broad technological and economic shift in which software companies are poised to take over large...

Here is something you can’t understand

There was a moment in the fourth quarter of 2018 where shares of Apple fell 38 percent in a matter of just a few weeks. Nothing much had fundamentally changed, but the stock market had been hit by a wave of fear that the Fed would go “too far, too fast” in normalizing interest rates and that China would retaliate against Apple in the Trade War. And during that brutal bear market, in which the S&P 500 fell ...

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Dear Samantha

Dear Samantha, I wanted to start by saying thank you so much for your letter and for watching my YouTube show. I’m very impressed by your desire to learn more about investing at such a young age. I wish I had started in junior high school! You are much smarter than I was at age 12. I don’t have any specific advice for you but I would like to recommend two books for you to read. They are two of the most importa...

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9 Uncomfortable Facts About the U.S. Stock Market

Things feel pretty comfortable in the stock market right now. Pretty much anything you put your money into has worked spectacularly well since stocks bottomed this past March. The crash last year shows how risky investing in stocks can be but it was over in the blink of an eye. There have been plenty of other instances where investors in U.S. stocks have been much more uncomfortable for longer periods of time. Here are 9 ...

This Week on TRB

This weekend’s new episode of the podcast is breaking all the download records for the Compound Show so far. Barry jumped in to talk about inauguration week and then Ryan Barrows from Vanguard gives us the data on How America Invests. Vanguard looked at 5 million of its customer accounts and found that the average portfolio is holding 21% in cash. What else are they doing? Check it out below or wherever you get you...

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Getting Your Stock Picks From Podcasts

The majority of my portfolio is rules-based because I prefer convenience, automation and taking my emotions out of my investment process. There are still decisions that need to be made up-front with this type of investment strategy, but utilizing rules and quantitative measures allow me to think and act for the long-term without stressing so much about my portfolio. But there is a portion of my money that is run almost ex...

Getting Your Stock Picks From Podcasts

The majority of my portfolio is rules-based because I prefer convenience, automation and taking my emotions out of my investment process. There are still decisions that need to be made up-front with this type of investment strategy, but utilizing rules and quantitative measures allow me to think and act for the long-term without stressing so much about my portfolio. But there is a portion of my money that is run almost ex...